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Reprocessing risk ‘not thesis changing’ for Intuitive Surgical, says BofA

BofA analyst Travis Steed notes that the risk of instrument reprocessing recently came more of a focus for Intuitive Surgical (ISRG) investors after Restore Robotics got 510(k) clearance for reprocessed Da Vinci Xi Monopolar Scissors in March and and announced its first in human case to close out May. While the firm acknowledges this as “a risk worth monitoring,” it does not see this as “a thesis changing risk” and thinks reprocessed instruments will face a slow adoption so it does not see a near term impact. The firm, which sees Intuitive Surgical estimates moving higher in the near term and driving the stock higher, maintains its Buy rating and $650 price target on the shares.

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